Evolution and Benefits of Integrated Reporting

Running head: ADVANCED CORPORATE REPORTING
Advanced Corporate Reporting
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1ADVANCED CORPORATE REPORTING
Table of Contents
Question 1:.................................................................................................................................2
Introduction:...........................................................................................................................2
Discussion:.............................................................................................................................2
Evolution of integrated reporting:......................................................................................2
Ways through which integrated reporting overcome the shortcomings of the traditional
financial reporting:.............................................................................................................3
Current challenges and problems for integrated reporting:................................................4
Discussion of whether Australian listed companies prepare integrated reporting:............5
Discussion of whether integrated reporting should be made mandatory globally:............6
Conclusion:........................................................................................................................7
Question 2:.................................................................................................................................7
Requirement (i):.....................................................................................................................7
Requirement (ii):....................................................................................................................8
Requirement (iii):.................................................................................................................10
References:...............................................................................................................................12

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Question 1:
Introduction:
Integrated reporting has gained popularity since its inception in 2010 of the
International Integrated Reporting Committee (IIRC) (De Villiers, Rinaldi and Unerman
2014). Even though IIRC has been the dominant body in setting global integrated reporting
policies, integrated reporting has emerged before the establishment of the stated body (Cheng
et al. 2014). The current section would focus on the evolution of integrated reporting along
with highlighting its key benefits to overcome the deficiencies of the traditional reporting
system. The section would emphasise on the existing issues and challenges of integrated
reporting as well. In addition, discussion would be made regarding whether the listed
organisations follow in Australia along with recommending whether integrated reporting
should be made mandatory for all global business organisations.
Discussion:
Evolution of integrated reporting:
Integrated reporting takes into account all material information of governance,
strategy, prospects and performance of an organisation in a manner that sheds light on the
environmental, social and commercial context within its operating areas
(Integratedreporting.org 2019). It results in clear and concise depiction of the value creation
picture, which is valuable and pertinent to all stakeholders. After the global financial crisis of
2007, many regulatory bodies, policy makers and leading financial institutions were working
on their endeavours for enhancing their mechanisms of corporate reporting. In 2009, “King
III Code of Governance Principles” has been released in South Africa, in which it has been
recommended that the organisations should prepare as well as publish integrated reports

3ADVANCED CORPORATE REPORTING
(Churet and Eccles 2014). Therefore, South Africa became the first nation where
organisations listed in Johannesburg Stock Exchange have to follow the reporting
requirements of integrated reporting. As a result, in May 2010, “Integrated Reporting
Committee” has been found in South Africa for formulating guidelines on sound integrated
reporting practices.
In August 2010, the “Global Reporting Initiative (GRI)” and “Accounting for
Sustainability Report (AAS)” declared the establishment of the “International Integrated
Reporting Committee (IIRC)” for creating an integrated reporting framework for the global
organisations. This framework would assist the organisations on communication of
information deemed to be useful for the investors as well as other stakeholders for analysing
the long-term prospects of the organisation clearly, concisely and comparably (Eccles and
Krzus 2014).
Ways through which integrated reporting overcome the shortcomings of the traditional
financial reporting:
There are a number of ways through which integrated reporting could cover the
loopholes inherent in traditional financial reporting, which are discussed as follows:
With the help of integrated reporting, assurance could be provided through which
corporate organisations briefly represents about the material information. This clearly
implies the performance of an organisation in non-financial aspects that influence the
quality of the developed strategy and its implementation (Flower 2015).
Integrated reporting provides better insight of the relationship between financial and
non-financial performance. This is crucial, as the organisations need to communicate
their non-financial performance strategically.